Obama budget: $901 billion deficit in 2013

NEW YORK (CNNMoney) -- President Obama will propose a budget on Monday that forecasts a $901 billion deficit in 2013, and includes plans to make targeted investments in areas like infrastructure while hiking taxes on the rich.

The White House bills the document as a "blueprint for how we can rebuild an economy where hard work pays off and responsibility is rewarded."

A few areas of reduction are known: Military spending will be reduced. The Pentagon plans to spend $487 billion less over ten years, a course that Secretary of Defense Leon Panetta has already laid out in some detail.

For example, Panetta has said the Army will save money by pulling two of its four brigades out of permanent bases in Europe to bases in the United States.

And the Navy will be getting rid of older ships that don't have the latest ballistic missile defense.

Of course, the budget doesn't just cut spending -- it also raises taxes.

The White House included $1.5 trillion in tax hikes, including a provision that will allow the Bush tax cuts to expire for high-income earners, a long-held Obama position.

The budget also incorporates the Buffett Rule, a guideline to ensure that the wealthiest do not pay a lower overall tax rate than those who earn substantially less money.

Specifically, no household making more than $1 million will be a allowed to pay less than 30% of its income in taxes.

In addition, the White House wants to reform the individual tax code in a way that "eliminates inefficient and unfair tax breaks for millionaires while making all tax breaks at least as good for the middle class as for the wealthy."

Later this month, the president will unveil a plan to reform corporate taxes, including lowering rates, administration officials said.

The budget to be released Monday will include many of the job creation provisions laid out in the American Jobs Act, a piece of legislation Obama delivered last year with great fanfare but was almost totally ignored by Congress.

The administration is also proposing a series of investments focused on infrastructure, education and domestic manufacturing, including old favorites like $30 billion to modernize schools and an additional $30 billion to retain and hire teachers and first responders.

The budget will also offer details on what the White House calls a Financial Crisis Responsibility Fee. The tax will raise $61 billion over 10 years from large financial institutions to help offset the cost of the TARP bailout and Obama's mortgage refinance programs.

The release of Obama's budget comes just as both political parties are ramping up efforts to fundraise and compete in both the presidential contest and crucial down-ballot races that will shape the next Congress.

That spells dysfunction on Capitol Hill.

Congressional Republicans have displayed no willingness to consider most of the president's proposals and are not likely to start now.